Yrjö Jahnsson lectures

Keynes' General Theory is one of the books that have made a universal impact; but it could scarcely have gained such a reputation had it not been deeply marked by the experience of the age in which it was written. In the very different world of today, a fresh appraisal is necessary in order that the ephemeral and the permanent (between which Keynes could naturally hardly be expected to distinguish) may be separated with the inestimable assistance of hindsight. Sir John Hicks was himself responsible for a widely employed approach to the thought of Keynes, but he has come to feel that a new presentation is now needed. This distinguished study, which is a contribution to the work of reappraisal, is the result.

"In the past decade macroeconomic theory has undergone a remarkable transformation. At the forefront has been the "rational expectations revolution," and this school's most brilliant exponent is Robert E. Lucas. In this elegant and relatively non-technical survey, Lucas reviews the nature and consequences of recent developments in monetary and business cycle theory. He discusses the usefulness of alternative models in determining the effects of economic policy on consumption streams and individual welfare. Drawing on a specific model of aggregate activity which represents the current frontier in business cycle research, he then examines the contemporary theory of unemployment. Finally and most controversially, he explores the role of monetary disturbances."--Back Cover